Shake-up at Interior Services gives King more power

Interior Services Group has revamped its executive board, promoting chairman David King to the newly created position of chief executive.

Roy Dantzic replaces King as chairman. Dantzic holds the same role at property group Development Securities. John Barnes, chairman of entertainment group Zoo Digital, comes in as a non-executive director.

The revamp is aimed at developing the company's Facilities Creations division, which includes its interior and exterior contracting arms. ISG announced a restructuring of the company after the sale of its barely profitable facilities management operations to Erinaceous Group last month for £10m.

Group finance director David Lawther said that the moves would bring in the skills needed to drive the group forward. Barnes brings marketing skills and Dantzic has the property expertise to improve the group's market knowledge.

Lawther said of King: "Anybody who knows David also knows that he enjoys his work."

Lawther added that the rumoured management buyout of the business is unlikely. He said: "We are a listed company and are driving it forward as a listed company."

The boardroom reshuffle will mean that Peter David retires from the board at the end of this month. He has been with the company for nine years.

We are a listed company, and are driving it forward as a listed company

David Lawther, finance director

The board below executive level is also being shaken up. Clive Butterfield will leave the main board at the end of the month. He has been with ISG since 1989 and is currently director of UK regions.

It is understood that Butterfield has been serving out a 12-month notice period and has not decided where he intends to go next.

His resignation is not related to the executive board shake-up, but is the second recent departure at main board level. Director Steve Root joined private contractor Bellwater this month as UK managing director.

In a trading statement, ISG confirmed that its second half results would be below expectations. It had earlier warned of tough trading conditions in the first months of the year.